The morning news. [volume] (Savannah, Ga.) 1887-1900, 1887-12-20
TOCUT OUT THE FACTORS
THE STANDARD OIL COMPANY'S
BIG SCHEME.

To Handle Turpentine Free of Charge
"A New York Syndicate Working
to Corner the Georgia Pineries-
What the Factors Say About 1.-THE
Standard - Begin Operations Jan. 1.
Bay street was considerably excited yes
terday by the announcement that the
Standard Oil Company will open an office
here on the first of the year, and will at
once send word to the producers of naval
stores that ii will handle their spirits free of
all commissions. 1t started as a rumor but
before dark there were several factors who
said that they knew it to be true that the
Standard would pursue that policy and
handle spirits free, which means that it will
buy them at the market price, and
give the consumer that figure, instead
of deducting from it commissions,
as the factors do. The Standard is buying
large quantities of turpentine out in the
country. and it is said it will be cheaper for
the company, and will greatly facilitate its
business ifsit can have the producer ship to
Savannah, and it had rather buy the spirits
here at the market price than in the coun-
try at a little less.
TO BUY UP THE FORESTS.
street concerning the naval stores business.
Col, John E. Donaldson, of cambridge, told
gentleman who has recently come in from
the country that he had been approached
by the representative of a new York Syndi-
cate which has been organized w tn a capt.
tai of Sc, coo, 600 for the purpose of buying up
the Georgia forests and distilleries.
The representative of the syndicate
called upon Col. Donaldson to consult
with him about the practicability
of the scheme and the representative stated
that the company had its capital and is
ready to begin its purchases. The factors
said that they had Known more than one
rich concern to break when they tried to
corner the Georgia pinerieS, and if the new
company wanted to try it it could do so.
Outside of the factors this scheme is looked
upon as more to be dreaded than
the Standard Oil Company, for while
the Standard would take the business
away from the factors it would leave it
with the producers, and the saving of the
commissions to the producers would really
give them a larger profit out of the business
than they now receive. But if the syndi-
cate should succeed it would not only cut
out the factor, but the producer also, and
leave the latter as well as the former robbed
Of his living.
WHAT THE FACTORS SAY.
A factor was spoken to concerning the
Standards scheme, and his reply was: IF
the Standard will only give TIE producers
the money TO pay us what they owe us they
may take the whole business, and we will be
glad to get out of it"
But it will not do that, will itf' was
asked
mo, and therefore it cannot carry out
the scheme. No one can do this business
without putting out money, and a lot of it,
too. but the Standard does not propose to
do that 1t simply intends to send word TO
the producer that it will handle his spirits
for nothing and ask him to cOnsign to it, but
that will not work. The producers are in
debt to the factors and that will hold them
TO us. Some of them never do pay up within
year or two of what they owe, and they
are bound to ship to the man who furnishes
them the money"
But isn't there an independent trade it
might getl"
''The Independent trade amounts to about
10 per cent, and there are good many who
win borrow money and pay it back in a few
months. They may be called independent,
but they will not send it to the Standard.
"Why notF'
For several reasons. Suppose that a
producer is able to run his still without Dor
rowing money, and he ships his spirits to
the Standard After awhile piece adioin-
ing him is to be sold out cheap and he wants
to buy it, but has not got the money He
comes to me and asks me to loan him S. 900.
Do you think / would do it, Oh no.
would tell him to get it from the man to
whom he shipped his spirits
PREJUDICE AGAINST THE STANDARD.
Another reason is that the people are
prejudiced against the Standard OH Com
pany and win not ship TO it under any CIR
cunlstances Some producers will not sell
TO itnow. 1t has not bought nearly so much
as ORD
and believe that its efforts to buy in the
country have failed, and that that is the
reason it wants to try its hand here. There
is still another reason. The producers do
not wan5 any one to work for them for
nothing. If he offers to do it they become
will steal from them. Why don't
naval stores go to Brunswick
They don't charge any commissions
there. They take the spirits and rosin to
account at Savannah prices, but the pro-
ducers are afraid of the taking to account
business The Savannah price, as it is
quoted, includes the commission of the fac
tor, and if the Standard wants to pay that
price to the consumer it will have to do a
factors business for nothing, and there is
no use in talking about it, it cannot do it.
There is no money in the business now; then
what will there be if the commission is
knocked OFF,
in coming here and making the offerl"
II think that the Standard Oil Company
imagines that it can get spirits enough here
to control the market with. 1t would lay
up several thousand barrels in warehouses
and use it to keep the market down, and
that is its only purpose"
THE TALK ON THE STREET.
Some of the factors seemed to think that
if the Standard wanted the business and
found that it could not get it without lend
ing the producers the money they needed, it
would begin and furnish them money, but
the report as it was on the street yesterday
was that it would do no lending.
The rumor has awakened great deal of
interest, and was the subject of much earn
est conversation ON the floor of the Board of
Trade yesterday morning. If the Standard
does what report says it will do, and it
seems certain that it will. it will cut the
factors out of their business altogether
WENT OUT WITH THE JURY.
py.iznpa,. WAITING RI ta T,,{oJ yHTa1lrS